Freeport-McMoRan reported higher third-quarter earnings and cash flow despite lower copper and gold sales, as stronger metal prices and progress restoring operations at Indonesia’s Grasberg district supported results. The copper producer also projected a substantial increase in sales through 2028 as Grasberg continues to ramp up and growth initiatives advance.
Revenue increased to $7.5 billion from $7.0 billion in the third quarter of 2025. Net income attributable to common stock rose to $1.2 billion, or $0.81 per diluted share, from $674 million, or $0.46 per share. Adjusted net income increased to $1.3 billion, or $0.88 per share, from $700 million, or $0.50 per share.
Adjusted EBITDA rose to $3.21 billion from $2.83 billion, while operating cash flow increased to $2.0 billion from $1.7 billion. The latest quarter included a $400 million use of cash for working capital, compared with $100 million a year earlier. Capital expenditures were $1.2 billion, up from $1.1 billion.
Higher commodity realizations offset lower sales volumes. Freeport sold 749 million pounds of copper, down from 977 million pounds a year earlier, while its average copper realization increased to $6.54 per pound from $4.68. Gold sales fell to 105,000 ounces from 336,000 ounces, but the average realized gold price rose to $4,273 an ounce from $3,539. Molybdenum sales increased to 22 million pounds from 19 million pounds, with the average realization climbing to $32.46 per pound from $24.07.
Consolidated unit net cash costs were $2.07 per pound of copper, compared with $1.40 a year earlier. Site production and delivery costs increased to $3.24 per pound from $2.71, while by-product credits partly offset the increase.
Grasberg recovery advances
At PT Freeport Indonesia, production exceeded refined-metal sales during the quarter, and gold sales were affected by shipment timing. The company’s Indonesian operations produced 249 million pounds of copper but sold 153 million pounds, while gold production totaled 229,000 ounces and sales were 98,000 ounces. Unit net cash credits were $0.84 per pound of copper, excluding idle-facility and restoration costs associated with the September 2025 mud-rush incident.
Freeport said the Grasberg Block Cave recovery remained on a steady path. Its average mining rate increased to 70,000 metric tons per day in the third quarter from 53,000 tons per day in the second quarter. Production Blocks 2 and 3 achieved planned operating rates, while material-handling upgrades are progressing toward completion in early 2027.
The company is targeting a restart of Production Block 1 South by mid-2027. It expects PT Freeport Indonesia’s production capacity to reach about 80% by mid-2027 and near-full capacity by the end of that year, although the timing remains dependent on remediation, operating performance and other conditions. The PTFI smelter also resumed operations after being shut following the Grasberg incident.
Freeport continues to work with the Indonesian government on the formal process to extend Grasberg’s operating rights beyond 2041. Government approvals, definitive agreements and the timing of the license process remain uncertain.
Regional operations face mixed conditions
In the United States, copper production totaled 321 million pounds and sales reached 333 million pounds, with unit net cash costs of $3.16 per pound. Extreme weather reduced operating rates and productivity below the company’s forecast. Mining rates were 10% above the prior-year quarter but 3% to 5% below both second-quarter and forecast levels.
South American operations produced 262 million pounds of copper and sold 263 million pounds, at unit net cash costs of $2.39 per pound. Cerro Verde delivered mining, milling and copper sales above forecast, while slope-management requirements at El Abra limited access to higher-grade ore.
Freeport is continuing heated-raffinate trials at El Abra and Cerro Verde and plans to begin testing higher-potential leaching additives in the first half of 2027. An investment decision on the proposed Bagdad expansion is expected in the fourth quarter of 2026. The project could add 200 million to 250 million pounds of annual copper production and 10 million to 12 million pounds of molybdenum.
Sales growth expected through 2028
For 2026, Freeport expects copper sales of 3.0 billion pounds, gold sales of 650,000 ounces and molybdenum sales of 93 million pounds. Fourth-quarter copper sales are estimated at 875 million pounds, compared with 749 million pounds in the third quarter.
The company projects annual copper sales of 3.7 billion pounds in 2027 and 4.1 billion pounds in 2028, representing growth of about 23% and 11%, respectively. Gold sales are estimated at 1.0 million ounces in 2027 and 1.2 million ounces in 2028. These estimates depend on the Grasberg Block Cave and PTFI smelter ramp-ups, weather, operational performance and the timing of shipments and sales.
Freeport expects 2026 unit net cash costs of approximately $1.90 per pound, excluding projected idle-facility and restoration costs associated with the Grasberg incident. Higher by-product credits are expected to offset pressure from input costs. The company estimated that rising diesel and electricity prices would add about $500 million of costs in 2026 compared with 2025, while capital-cost inflation remained above the consumer-price index.
Full-year operating cash flow is projected at about $8.5 billion, net of $600 million in working-capital and other uses, assuming a fourth-quarter copper price of $6.50 per pound. Capital expenditures are expected to total $4.4 billion, including $3.0 billion for major projects and $1.4 billion for sustaining and other spending.
Freeport ended September with $4.3 billion in cash and cash equivalents and $9.4 billion of total debt. Consolidated net debt was $5.1 billion, including $3.2 billion associated with PTFI’s downstream processing facilities. The company returned about $1 billion to shareholders during the first nine months of 2026 through dividends and share repurchases.
The outlook remains exposed to commodity-price movements, energy and consumable costs, weather, shipment timing and the pace of the Grasberg recovery. Additional risks include underground mining conditions, Indonesian regulatory approvals, geopolitical developments, labor relations and inflation affecting operating and project costs.
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